Economic burden not decisive for main residence exemption

The question of the Primary residence exemption for the exemption from the Property income tax always throws up new constellations. Crucial for the Tax exemption on private property sales is that the main residence is vacated and the seller, from purchase/construction until sale, uses this property for at least two years continuously also Principal residence has used. Alternative also applies when the main residence is abandoned and he inside the last 10 years before the sale at least 5 years served as the principal residence – this exemption does not require immediate (temporal) use as the principal residence prior to the sale.

The Federal Fiscal Court was (GZ RV/5100672/2018 of 12 July 2018) to deal with a situation in which a taxpayer had to give up their main residence due to family disputes and from which moved out of the shared household. For the sale of the terraced house that was jointly occupied as the main residence, the principal private residence relief should be claimed. BFG however None of the two Exemptions as fulfilled the requested five years of continuous use was neither fulfilled before moving out of the terraced house nor during the second move into the terraced house (without the former partner) - not even if one were to add the two periods together contrary to the provision. It also makes no difference, that the taxpayer also during his move from the terraced house further die Loan instalments had to settle - the period of such economic burden has No relevance to claiming the main residence exemption.